ACME Partnership Has Had the Following Gross Receipts Since Its

ACME Partnership has had the following gross receipts since its formation: $21.8 million in 2018, $24.6 million in 2019, $28.8 million in 2020, $21.6 million in 2021, and $32 million in 2022. Partner Meile, Inc. is a C corporation. In what tax years must ACME use the accrual method?

A) 2018 and all following years, because it has a partner that is a C corporation.
B) 2020 and all following years, because gross receipts are more than $25 million that year.
C) 2021 and all following years, because average annual gross receipts are more than $25 million in 2020.
D) 2020 and 2022 because those are the only years in which gross receipts exceeded $25 million.
E) 2021 and 2022 because those are the only years in which the prior years' gross receipts exceeded $25 million.

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